But Tourism Minister John Penrose said the current rules were ‘inconsistent and illogical’.

He added: ‘This is a golden opportunity to deregulate and give the Big Society a boost.’

A policy document does, however, note that senior police officers suggest a maximum of 500 people at an unlicensed event.

Cllr Chris White, chairman of the Local Government Association’s culture board praised the proposals for cutting red tape for amateur plays and concerts.

He said: ‘Organisers should not be deterred by red tape and we are firmly behind any effort to make the licensing process as quick, easy and transparent as possible.’

But he added: ‘As democratically-elected bodies, local authorities have an important role to play in ensuring events are suitable and safe for the areas in which they are to be held.

‘Any changes to the licensing laws should strike a balance which ensures councils are still able to protect people who attend public events as well as those who work and live nearby.’

Nightclubs, pubs and bars still need licences in order to sell drink but the change would allow one-off events in warehouses and other private premises.

A spokesman for the Department for Culture, Media and Sport said: ‘We are not going to legalise raves. They will continue to be illegal under the Criminal Justice and Public Order Act 1994.

‘Crime and disorder at events more generally is normally associated with availability of alcohol. In these instances, events can be controlled through the alcohol licence.

'There is also a legal duty of care on event organisers in terms of ensuring the safety of staff, performers and the general public at events, and this can include liaising with the relevant safety authorities.’

Forgive the daily fail link and its blatant bias, got it off another forum, but still, this will surely make putting small events on a hell of a lot easier and cheaper, cant wait to get a Newbury night going